Firm Not Subject to 4% Contractor's Tax under Sub-contract Agreement with Principal Contractor
BIR Ruling No. 101-85 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 25, 1985
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June 25, 1985 BIR RULING NO. 101-85 205 021-83 101-85 Gentlemen : In reply to your letter dated May 14, 1985, please be informed that under Section 205 of the Tax Code, as amended, any portion of the total contract price which is paid to the sub-contractor by the prime contractor shall be excluded from the taxable gross receipts of the former. In other words, you are not subject to the 4% contractor's tax under your sub-contract agreement with the principal (prime) contractor, PNCC. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner
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